11 VAT changes announced this month
It’s important to keep up to date with the multitude of VAT changes announced by governments and tax authorities around the world every day.
Here, we take a look at 11 of the most noteworthy updates confirmed so far this month:
VAT in the hospitality sector will increase from the temporary lower rate of 5% introduced as a result of the pandemic to 12.5% on 1st October. It will return to the UK standard rate of 20% on 1st April 2022.
Electronic invoices and receipts will not immediately become mandatory for small businesses trading in Peru, following a decision to postpone their implementation by the country’s tax authority.
A draft law including amendments to the Tax Code of Ukraine has been announced. It proposes introducing a reduced rate of VAT at 7% that would apply to socially important items, including tickets for sports events.
Egyptian tax authorities have declared that food sold online – as well as food deliveries – is subject to VAT. Any business selling online with a turnover in excess of EGP 500,000 must register for VAT. The tax is applied at the standard rate of 14%.
Marina resort services will carry a 10% VAT rate. This will include parking and overnight stays.
VAT will be exempt for certain consumer establishments from 14th to 17th September to coincide with a national holiday and encourage a tourism boom.
Preserved, pre-packaged parathas are subject to Indian GST at a rate of 18%, providing they are not similar to roti, chapati or khakra.
VAT on hair prosthesis has been reduced from 21% to 6% by Minister of Finance, Vincent Van Peteghem. The decision follows a campaign led by federal MP Nathalie Muylle in association with patient associations representing people who often use a hair prosthesis during or after battling a disease.
Thailand’s reduced VAT rate of 7% will remain in place for another two years following approval by the nation’s Cabinet.
A new government proposal seeks to establish digital services VAT in Israel. The tax would apply to foreign businesses that supply online services to consumers in the country.
The Bolivian government has announced imports of capital goods will be exempt from VAT as it looks to drive productivity and reduce unemployment.
Parliament is currently considering a draft bill that would extend the reduced 9% VAT rate to cover fruits and vegetables – which are subject to the standard 20% rate – on a temporary basis.
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